Year-on-year, prices slowed for heavily-weighted food and non-alcoholic beverages (+5.5 percent in December from 6.5 percent in November); alcoholic beverages and tobacco (+4.0 percent from +4.1 percent), routine maintenance and household equipment (+2.6 percent from +2.7 percent); health (+3.1 percent from +3.5 percent) and recreation and culture (+1.4 percent from +1.5 percent).
Meanwhile, prices declined for housing, water, electricity, gas and other fuels (-1.6 percent from 0.3 percent) and transport (-1.0 percent from 0.2 percent). Prices remained unchanged for clothing and footwear (+3.5 percent), communication (+0.1 percent) and recreation, education (+5.1 percent) and restaurant and miscellaneous goods and services (+1.8 percent).
The growth of food index alone decelerated to 5.8 percent in December from 6.7 percent a month earlier, and down from 5.0 percent increase in the same month a year ago. Cost of rice, fish, milk, cheese and egg, oils and fats and sugar rose at a slower pace while prices of vegetables declined.
Core inflation also decelerated further to 2.3 percent year-on-year in December, from a 2.7 percent increase a month earlier.
In 2014, the Philippines's central bank targeted inflation to be between 3 to 5 percent.
On a monthly basis, consumer prices declined 0.2 percent in December from 0.1 percent drop in November. Decreases were noted in prices of housing, water, electricity, gas and other fuels; transport and food and non-alcoholic beverages. Meanwhile, prices were stable for health, communication, recreation and culture, education and restaurant and miscellaneous goods and services. In contrast, prices were higher for clothing and footwear and routine maintenance and household equipment.